Norwood Resources Ltd. says that in preparation for the commencement of the production testing of the Maderas Negras and San Bartolo wells in late July, 2008, the Company has continued to refine the petrophysical model of Maderas Negras. Using data from Core Lab's analyses of whole core recovered during the drilling program and Schlumberger's additional evaluation of the well logs, the calculated amount of net hydrocarbons has increased to 286 feet from the previously reported 138 feet in the Brito Formation. These values are determined using the same reservoir criteria used by Schlumberger for establishing net hydrocarbon as previously announced for both San Bartolo and Maderas Negras wells.

Cased hole wireline logging and testing of the Brito Formation in San Bartolo well requires that 11 bridge plugs set across previously perforated and tested intervals be removed from the well bore. The Company, using its Ideco 35 rig, has re-entered the wellbore and upon drilling out the first bridge plug at a depth of 5900 feet, encountered volumes of gas and oil. The Company commenced swab stimulation and lifting from the perforated interval 5915'-5950' for approximately 10 hours resulting in a stabilized recovery of 45 -- 47 API gravity oil and gas. The tested interval was previously calculated to have 30 feet of net reservoir but only 1.5' of net hydrocarbons. Although no rates were measured, the volumes of oil and gas recovered at the surface are strongly suggestive that the calculation of net hydrocarbons attributed to this interval is too conservative. Subsequent to termination of the lifting procedure, the well continued to flow gas. The well was then shut-in and flow terminated when the testing packer was withdrawn. The Company will return to this interval in the future to establish a potential production rate.

Based on the initial performance reaction of this interval to limited swab stimulation, the Company is planning to swab stimulate and test nine of the remaining ten perforated intervals in the well. The exact number of intervals that can be swab stimulated will be dictated by the date of arrival of Schlumberger's testing equipment and personnel from Villahermosa, Mexico and the Company's near term ability to contract and build petroleum storage facilities.

In addition to the Brito formation potential, the Company and Schlumberger are independently evaluating the Masachapa formation in the San Bartolo wellbore where 387 feet of net hydrocarbons has been identified on logs. Other Masachapa drill targets have also been identified at San Bartolo with a maximum depth of 3200'. The first of these drill tests is being planned for later this year.

Tags: Maderas Negras, Norwood Resources Ltd., San Bartolo wells